In order to take advantage of the giant magnetoresistance (GMR) effect in the read head of a magnetic storage system, the device must respond to magnetic fields of the order of 100 Oe. The giant magnetoresistance effect has been observed in multilayers such as for example, in a publication by S. Parkin et al, Phys. Rev. Lett. 64, 2304 (1990) . The giant magnetoresistance effect has been observed in phase separated, granular Cu--Co films such as in a publication by J. Q. Xiao et al, Phys. Rev. Lett. 68, 3749 (1992). In both cases high magnetic fields are required for magnetic saturation. In the granular films, a polycrystalline metastable Cu--Co alloy film is deposited. With appropriate heat treatment Co precipitates as single domain particles, The magnetization is oriented along the easy axes of each particle which varies randomly from particle to particle. In a zero applied magnetic field, the resistance is high because the electron or hole carriers scatter at each interface where the magnetic orientation changes. At magnetic saturation, the resistance is low to electron or hole carriers because the magnetization of all of the particles is aligned. The magnetic field must overcome the magnetocrystalline anisotropy and the shape anisotropy of the Co particles. In addition, if there is any interfacial strain at the Cu/Co interface, there may be an additional anisotropy through the magnetostriction (.lambda.).